In September 2023, HDFC Bank Limited witnessed a remarkable 51% surge in its net profit for the second quarter. Simultaneously, the bank recorded a substantial 70% increase in its total income. Fueled by these outstanding quarterly results, HDFC Bank’s shares opened with strength on Tuesday, exhibiting an uptrend of more than 1%. Several brokerage firms, including Jefferies, bestowed ‘Buy’ ratings upon the bank’s shares.

HDFC Bank Limited unveiled its second-quarter results for September 2023 on Monday, shortly after the market closed. The company reported an impressive annual-based growth of 51% in net profit, reaching a staggering INR 15,976 crores. Furthermore, the bank’s total income for the second quarter surged to INR 78,406 crores, marking a substantial 70% increase.

During the second quarter, the bank’s net interest income (NII) witnessed a robust annual-based growth of over 30%, reaching INR 27,385 crores. Additionally, HDFC Bank’s profits from its operations in the private sector exhibited a commendable increase of 30.5%, totaling INR 22,694 crores.

As of September 30th, the gross non-performing assets (NPAs) as a percentage of total loans stood at 1.34%, slightly higher than the 1.23% recorded a year earlier and the 1.17% from the previous quarter. Similarly, the net NPAs as of September 30th were at 0.35%, compared to 0.33% a year ago and 0.30% in the previous quarter.

In response to these stellar second-quarter results, HDFC Bank’s shares experienced a 0.4% dip on Monday, closing at INR 1,529.60 on the National Stock Exchange, following a previous uptrend of over 1% as it opened at INR 1,555.75. In an environment contrary to this trend, HDFC Bank’s shares continued to trade with confidence, donning a positive market sentiment.

Prominent brokerage firm Jefferies, among others, extended their support for HDFC Bank’s shares following the results for the September quarter, issuing ‘Buy’ ratings and setting a target price of INR 2,030. HSBC also provided a ‘Buy’ rating but with a target price of INR 1,850. Likewise, Morgan Stanley maintained its ‘Overweight’ rating on the shares and set a target price of INR 2,110. Additionally, Nuveen and Motilal Oswal also endorsed the bank’s shares with ‘Buy’ ratings.